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Mark Henwood
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Mark Henwood is the director of New Energy View (www.newenergyview.com) and CEO of Henwood Associates, Inc. an owner, operator, engineer, and constructor of hydroelectric and other power facilities. Previously Mark built Henwood Energy into a market leader serving the global power industry... More
My company:
Henwood Associates, Inc.
My blog:
New Energy View
  • Shale Gas Flaps Its Black Wings

    The records keep falling … the oil/gas price ratio hit another all time high on the April 19th at 9.29 (Cushing closed at $102.58/bbl and Henry gas closed at $1.90/mmBtu). The gas price is the equivalent of oil at $11.02/bbl. The history of oil/gas prices in the US is shown below from www.newenergyview.com

    (click to enlarge)

    Meanwhile, low gas prices are driving the price paid to older renewable producers in California to near record low levels. In PG&E the April price for "Short Run Avoided Cost" is 2.7 cents/kWh. IMO prices this low will cause some renewable facilities to shut in, unable to recover operating costs, much less insurance or property taxes. It's ironic for a state that is imposing a 33% RPS standard and implementing a cap and trade system to have a pricing mechanism that will force some production to, effectively, be flared.

    Apr 25 1:18 AM | Link | Comment!
  • In case you didn't notice this about TIPS .......

    …the 5 year TIPS traded at an all time low real yield today (Friday Nov 4, 2011) of -1.047%. The 10 year didn’t quite hit a record but it traded at a real yield of -0.64% . The last time the TIPS yields hit a record low was on August 10, the day the DOW dropped 508 points. In contrast, today the DOW fell a modest 61 points and is over 1000 points higher than it was August 10. In August money was moving into the safety of US Treasuries driving down their yields and carrying the TIPS down with them. Today, it looks like the ECB rate cut put pressure on Treasuries with a similar effect. The TIPS may have lower to go still. If inflation expectations click upward, and the central banks constrain nominal rates, then TIPS will go lower. Amazing, a very safe way to lose money in real terms.

    Nov 05 11:21 PM | Link | Comment!
  • Distorted FI markets.
    Fixed income markets are really distorted in the US...TIPS real interest rates on the 5 year went negative again.  This is another opportunity to dump your short dated TIPS at a market extreme.

    Why would anyone make this deal unless they are expecting armagedon and think a very secure, small negative real return is the best that's available. 
    Feb 28 12:36 AM | Link | Comment!
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  • TIPS real yields are negative out to about 7 years. This has only happened on 10 days since 1/1/2003, 9 of which are the last nine days.
    Oct 8, 2010
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